Increase in Delaware Appraisal Cases: Increased Shareholder Activism or Growing Hedge Fund Involvement?
By: Mark Tarallo
Any M&A transaction, especially a contested transaction or a transaction involving insiders, can lead to litigation. One type of litigation is an appraisal claim, where shareholders contest the value put on the company in the transaction and ask a court to determine “fair value.” According to an article by Professors Minor Myers and Charles Korsmo, the value of appraisal claims filed in Delaware in 2013 was approximately $1.5 billion, almost ten times the value of appraisal claims in 2004. 197 more words